Bill Summary
The proposed legislation aims to implement across-the-board rescissions of nonsecurity discretionary spending for fiscal years 2026 and beyond. Specifically, it stipulates the following:
1. **Definitions**: The bill defines key terms such as "budget authority," "discretionary appropriations," and "nonsecurity discretionary appropriations," establishing the framework for the rescissions.
2. **Rescissions**:
- For **fiscal year 2026**, a 1% reduction will be applied to nonsecurity discretionary appropriations.
- For **fiscal year 2027**, the reduction increases to 2%.
- For **fiscal year 2028 and thereafter**, a 5% reduction will be imposed on nonsecurity discretionary appropriations.
3. **Reporting Requirement**: The Director of the Office of Management and Budget (OMB) is required to submit a report to the Senate and House Appropriations Committees within 30 days after appropriations are made available, detailing the accounts and amounts affected by these rescissions.
Overall, the legislation seeks to reduce federal spending in nonsecurity areas systematically, aiming for fiscal restraint over multiple years.
Possible Impacts
The proposed bill for across-the-board rescissions of nonsecurity discretionary spending could have several significant effects on different groups of people. Here are three examples:
1. **Impact on Public Services**: Many public services, such as education, healthcare, and social services, are funded through nonsecurity discretionary appropriations. A reduction of 1% in fiscal year 2026, 2% in fiscal year 2027, and 5% in subsequent years could lead to budget cuts for schools, community health programs, and social welfare initiatives. This could result in reduced access to essential services, layoffs of public sector employees, and increased costs for individuals relying on these services.
2. **Effects on Nonprofit Organizations**: Nonprofit organizations that rely on federal funding for programs and services could experience financial strain due to the rescissions. Many nonprofits receive grants or funding tied to nonsecurity discretionary appropriations aimed at addressing social issues such as poverty, housing, and mental health. Cuts to these funds may lead to program reductions, curtailment of services, or even the closure of some organizations, adversely affecting the communities they serve.
3. **Economic Ripple Effects**: The rescissions could have broader economic implications. Reductions in government spending often lead to decreased demand for goods and services, especially in sectors that depend on federal contracts or grants. This could slow down economic growth in affected areas, lead to job losses in associated industries, and decrease consumer spending as unemployed individuals or those affected by service cuts reduce their expenditures. Additionally, the uncertainty surrounding future budget cuts may discourage investment and hiring by businesses reliant on government contracts or funding.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 360 Introduced in Senate (IS)]
<DOC>
119th CONGRESS
1st Session
S. 360
To provide for across-the-board rescissions of nonsecurity
discretionary spending.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
February 3, 2025
Mrs. Blackburn introduced the following bill; which was read twice and
referred to the Committee on Appropriations
_______________________________________________________________________
A BILL
To provide for across-the-board rescissions of nonsecurity
discretionary spending.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. ACROSS-THE-BOARD RESCISSIONS.
(a) Definitions.--In this section:
(1) Budget authority.--The term ``budget authority'' has
the meaning given that term in section 3 of the Congressional
Budget and Impoundment Control Act of 1974 (2 U.S.C. 622).
(2) Discretionary appropriations; security category.--The
terms ``discretionary appropriations'' and ``security
category'' have the meanings given such terms in section 250(c)
of the Balanced Budget and Emergency Deficit Control Act of
1985 (2 U.S.C. 900(c)).
(3) Nonsecurity discretionary appropriations.--The term
``nonsecurity discretionary appropriations'' means
discretionary appropriations provided in a regular
appropriation Act that are not included in the security
category.
(4) Regular appropriation act.--The term ``regular
appropriation Act''--
(A) means an annual appropriation Act (as described
in section 105 of title 1, United States Code)
providing new budget authority for the programs,
projects, and activities under the jurisdiction of a
subcommittee of the Committee on Appropriations of the
Senate; and
(B) includes--
(i) a title, division, or other subdivision
of an Act or resolution that, if it were a
separate Act, would be an Act described in
subparagraph (A); and
(ii) a resolution or Act, or a title,
division, or other subdivision of a resolution
or Act, making continuing appropriations for a
fiscal year.
(b) Rescissions.--
(1) Fiscal year 2026.--For fiscal year 2026, effective on
the day after the date on which appropriations are made
available through the end of fiscal year 2026 for the entire
Federal Government, there is rescinded, on a pro rata basis, 1
percent of the nonsecurity discretionary appropriations made
available for fiscal year 2026.
(2) Fiscal year 2027.--For fiscal year 2027, effective on
the day after the date on which appropriations are made
available through the end of fiscal year 2027 for the entire
Federal Government, there is rescinded, on a pro rata basis, 2
percent of the nonsecurity discretionary appropriations made
available for such fiscal year.
(3) Subsequent fiscal years.--For fiscal year 2028, and
each fiscal year thereafter, effective on the day after the
date on which appropriations are made available through the end
of the applicable fiscal year for the entire Federal
Government, there is rescinded, on a pro rata basis, 5 percent
of the nonsecurity discretionary appropriations made available
for such fiscal year.
(c) OMB Reports.--For fiscal year 2026, and each fiscal year
thereafter, not later than 30 days after the date on which
appropriations are made available through the end of such fiscal year
for the entire Federal Government, the Director of the Office of
Management and Budget shall submit to the Committee on Appropriations
of the Senate and the Committee on Appropriations of the House of
Representatives a report specifying the account and amount of each
rescission made pursuant to subsection (b).
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